If you’re considering automating your accounts payable processes, you’re probably weighing a lot of different factors to make your decision. We talk to companies every day who are in that same boat, and we want to give you a straightforward list of the most important advantages and disadvantages of switching to an automated AP processing system.
Manual accounts payable processes can become messy. You may have a solid system in place, with procedures to upload Accounts Payable data to the cloud and integrate it with your accounting system. However, AP is prone to input and posting errors: someone in the accounting department can make a mistake; management didn't actually approve payment for a major purchase for which an invoice has been received; many invoices are hard to find because your boss insists on overstuffed file cabinets with invoices dating back to the Carter Administration.
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While many companies have digitized and streamlined their human resources and procurement workflow processes, significantly fewer companies have optimized their accounts payable (AP) process for efficiency. In many cases this is because Accounts Payable departments provide more of a back-end function whose function is to simply “pay the bills on time.” The reality of the matter, however, is that the Accounts Payable department is one of the most important in your business – often engaging in detailed time-sensitive activities – and should run as efficiently as all other departments.
Outsourcing some or all of your accounting department can seem like a risky move, but it can reduce your risk of errors and save your organization money. Some may view this as a service only for large businesses, but the use of cloud software makes accounting outsourcing scalable, and affordable for smaller clients. Here are some reasons to consider an accounting outsourcing service, regardless of company size.
The increasing availability of restaurant technology can often lead to multiple, disjointed systems for different facets of a business. For example, software for Point of Sale (POS), labor scheduling, inventory, cost analysis, Enterprise Resource planning (ERP), accounting, data analytics and reporting, etc. are all important tools, but lose some of their potential value to a business when the information is separated into silos and difficult or impossible to access and share across systems. As restaurants delve more deeply into the tech world, it becomes increasingly apparent that it is necessary to not only utilize several software systems but also to create a cohesive solution that unifies the many moving parts of a restaurant’s operation. This is especially true for multi-location restaurants.
In today’s high-speed digital world, we expect instant answers and immediate results. Without the technology to support this, businesses can struggle to make accurate, real-time decisions – especially when they are relying on paper-intensive, manual processes that require extensive spreadsheets and weeks of analyzing to inform key stakeholders. With a cloud financial system, data across an organization is easily accessed, analyzed and actionable.